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Javelin Ltd v Zimba Logistics and Hardware Ltd and Anor (Civil Suit No. 865 of 2020) [2021] UGCommC 94 (22 March 2021)
- Citation
- [2021] UGCommC 94
- Status
- Judgment
- Jurisdiction
- Uganda
- Court
- Commercial Court of Uganda
- Panel
- Gaswaga, J
- Case number
- Civil Suit No. 865 of 2020
- Language
- English
More details
- Court
- Commercial Court of Uganda
- Panel
- Gaswaga, J
- Case number
- Civil Suit No. 865 of 2020
- Language
- English
On this page
Professional case brief
Research organized from the available case record
01
Holding and result
The evidence on record, including the supply of goods on credit, dishonoured cheques, and an unfulfilled undertaking to pay, establishes the defendants' liability for the debt claimed by the plaintiff. The defendants failed to defend the suit, and their application for leave to appear and defend was dismissed for want of prosecution. The court finds the debt of Ugx 270,272,100/= is due and owing, and the plaintiff is entitled to interest at 24% per annum from the date of default until payment in full, as well as costs of the suit.
Court disposition
Judgment entered for the plaintiff against the defendants jointly and severally.
Orders
- Defendants to pay the plaintiff Ugx 270,272,100/=
- Defendants to pay interest at 24% per annum from date of default until payment in full.
- Defendants to pay costs of the suit.
02
Material facts
Parties
Javelin Limited
PlaintiffZimba Logistics & Hardware Limited
DefendantAeko Ali Awazi
DefendantAmounts and remedies
- Principal Debt: UGX 270,272,100
- Interest Rate Per Annum: 24
03
Procedural history
Posture
Civil Suit / Judgment
04
Questions and positions
Legal issues
- 01
Whether the defendants are indebted to the plaintiff for the sum claimed.
- 02
Whether the plaintiff is entitled to interest at 24% per annum from the date of default until payment in full.
- 03
Whether the plaintiff is entitled to costs of the suit.
Party arguments
- Applicant
- The plaintiff supplied cement and hardware to the defendants on credit, who issued cheques that were dishonoured. Despite notification and a subsequent undertaking by the 2nd defendant to pay in instalments, the outstanding sum remains unpaid. The plaintiff seeks recovery of Ugx 270,272,100/=, interest at 24% per annum from the date of default, and costs.
- Respondent
- The defendants did not file a defence to the main suit. Their application for leave to appear and defend was dismissed for want of prosecution after repeated failure to attend court and pursue settlement. No substantive arguments were presented.
05
Court’s reasoning
Legal principles
- 01
General principles of contract law and commercial transactions.
A party who receives goods on credit and fails to pay is liable for the debt.
- 02
Court's discretion under Ugandan law.
Interest may be awarded on outstanding sums from the date of default until payment in full.
- 03
Civil Procedure Act, Section 27.
Costs follow the event and are awarded to the successful party.
06
Ratio, limits and disposition
Ratio decidendi
The evidence on record, including the supply of goods on credit, dishonoured cheques, and an unfulfilled undertaking to pay, establishes the defendants' liability for the debt claimed by the plaintiff. The defendants failed to defend the suit, and their application for leave to appear and defend was dismissed for want of prosecution. The court finds the debt of Ugx 270,272,100/= is due and owing, and the plaintiff is entitled to interest at 24% per annum from the date of default until payment in full, as well as costs of the suit.
Court disposition
Judgment entered for the plaintiff against the defendants jointly and severally.
- Defendants to pay the plaintiff Ugx 270,272,100/=
- Defendants to pay interest at 24% per annum from date of default until payment in full.
- Defendants to pay costs of the suit.
Source and reliance status
Commercial Court of Uganda
This page organises the available record for research. Confirm quotations, current status, and subsequent treatment against the official source before relying on the case.
Judgment reading view
Judgment text
The complete available source text.
Commercial Court of Uganda
Judgment
THE REPUBLIC OF UGANDA
IN THE HIGH COURT OF UGANDA AT KAMPALA
[COMMERCIAL DIVISION]
Civil Suit No.865 of 2020
JAVELIN LIMITED:::::::::::::::::::::::::::::::::::::::::::::::::PLAINTIFF
VERSUS
- 1. ZIMBA LOGISTICS & HARDWARE LIMITED - 2. AEKO ALI AWAZI:::::::::::::::::::::::::::::::::::::::::::""DEFENDANTS
BEFORE; HON. JUSTICE DUNCAN GASWAGA
JUDGMENT
This is a judgment on a claim for recovery of a liquidated sum of Ugx 270,272,100/= (Uganda Shillings Two hundred seventy million two hundred seventy two thousand one hundred only) with interest at a rate of 24% from the date of default until payment in full and costs of the suit. The cause of action arose as follows; that between 07/10/2019 and 13/05/2020 the 1st defendant through its managing director the 2nd defendant approached the plaintiff for credit supply arrangement. The plaintiff went ahead to supply to the defendants on credit with the requested cement and its hardware and the same was duly received, however the defendants issued cheques to the plaintiff for payment which were dishonoured. Consequently the defendants were notified and requested to pay to the plaintiff all the outstanding monies but the defendants ignored the same. The 2nd defendant, further in an undertaking on 03rd day of September 2020, agreed to pay all the
outstanding sums in weekly instalments of Ugx 5,000,000/= starting from 09/09/2020 and stated that any breach of the undertaking should be informed to him. The said undertaking was breached by the defendant, leaving the outstanding sum unpaid to date, the reason for the suit.
- [2] It should be noted that the defendants filed M. A. No. 1090 of 2020 for leave to appear and defend which was later on 22/03/2021 dismissed at the instance of the respondent's counsel for want of prosecution when the defendants refused, ignored and or failed to turn up in court. This was after various adjournments (01/03/2021, 11/03/2021, 18/03/2021 and 22/03/2021) with promises from the defendant's Counsel to pursue a settlement. This therefore left the main suit un defended. - [3] <sup>I</sup> have had opportunity once again to peruse the pleadings. <sup>I</sup> find that the evidence on record clearly establishes a debt of Ugx 270,272,100/= (Uganda Shillings Two hundred seventy million two hundred seventy two thousand one hundred shillings) owed by the defendants. The debt is not challenged.
[4] Accordingly, <sup>I</sup> hereby enter judgment against the defendants jointly and severally in the following terms;
a) that the defendants pay to the plaintiff a sum of Ugx 270,272,100/= (Uganda Shillings Two hundred seventy million two hundred seventy-two thousand one hundred shillings)
b) that the defendants pay an interest rate of 24% per annum from date of default until payment in full.
c) costs of the suit.
Dated, signed and delivered at Kampala this 22nd day of March, 2021
Duncan
JUDGE
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